What Credit User Are You: a Revolver or a Transactor?

Credit experts single out 2 basic types of credit card users. What they have in common is that both groups use bank credit card deals to pay for purchases. But these categories stick to different schemes of managing finances. The groups have names - revolvers and transactors.

They manage plastics in different ways, their spending habits and financial management style differ. You wonder which type of card user you belong to? Keep on reading and you will find it out. This will not just satisfy your curiosity, this information will help you choose the best card for you.

You will not find some official scientific definitions for the notions "revolvers" and "transactors". No economics dictionary will explain the meaning of these words to you. In fact they are easy to understand. Just think how credit products function. First you borrow money to buy something you need, and then you pay the money you borrowed back. This scheme is the key to understanding what hides behind the words "revolvers" and "transactors".

Revolvers dig in the first part of the process of borrowing and paying back. You say everybody likes to get rather than give it back. But this trait is a distinguishing characteristic of revolvers and it bounces back on their financial standing. Revolvers use plastics with enthusiasm and prefer to pay off their balances through making minimum monthly payments. This type of credit consumers has a second name - borrowers. You are most likely to find revolvers on bad debtors lists.

Transactors are more calculating and frugal when it comes to spending their plastic money funds. These people pay credit card bills on time, try to keep their balances low and control their credit spending.

Revolvers do not weigh all pros and cons before making a big-ticket purchase. They do not meticulously compare food prices when shopping for groceries. They just live full life and buy what they want. They are more impulsive. Such people can apply online for a deal just because it comes with a tempting 0% APR on balance transfer, even if they do not really need it. Revolvers, as a rule, carry balances from month to month and tend to accumulate significant debts.

Most transactors have good credit score. They tend to pay off their balances in full each month. They rarely accumulate large debts pay down plastics within short periods of time and save on interest this way.

Now that you clearly understand what kind of credit users revolvers and transactors are, you can tell what category you belong to. Want to know what deals suit you the most?

If you are a transactor, deals with low APR on purchases is not the best option you can go with. You will not accrue much debt anyway, you will pay the borrowed money back on time, and a higher interest is not something you should stay away from. Think about filling out rewards credit card applications. Hotel rewards, gasoline rebates, cash back, travel rewards, even charity rewards - that is a good choice for you. Such plastics will reward you for your financial responsibility.

Low interest cards are, on the contrary, a perfect decision for revolvers. Low rates will save your money and will compensate for your impulsivity and striving to have it all.